ADVERTISEMENT

A post-Brexit London 'would need fewer new homes' says housebuilder

"My concern would be around inward investment into London and it would slow down the growth of jobs and its influence," he said.

A post-Brexit London 'would need fewer new homes' says housebuilder

London-focused upmarket housebuilder Berkeley said on Friday the capital would need fewer new houses if Britain were to leave the European Union due to what it believed could lead to a slowdown in economic growth.

The firm, which said on Friday that its adjusted pre-tax profits rose 10 percent to 242 million pounds ($366 million)in the first half of the year, builds in London and southern England, markets which are most affected by demand from foreign investors.

Managing Director Rob Perrins told Reuters that if voters decided to back leaving the European Union in a referendum due by the end of 2017, London's status as a world city would be diminished.

"If it retained less influence and less jobs, it will grow less quickly so it would actually need less homes built."

ADVERTISEMENT

Shares in the firm were up nearly 7 percent at 3580 pence at 0830 GMT, making it the top riser on the FTSE 100 after the firm said it was on course to deliver pre-tax profits of 2 billion pounds over three years to the end of the 2017/18 period.

Perrins also said an additional stamp duty levy to be charged on the price of properties bought as second homes and for renting out could see fewer homes built in other major conurbations where transaction taxes are currently lower than many parts of London.

He said buy-to-let property investors who often prefer purchasing properties before they are built could be put off by an increase in the levy due to come into effect in April, thereby reducing the number of homes built.

"I think the actual effect could be more in inner cities in Birmingham, Manchester and Leeds where effectively you've doubled stamp duty for buy-to-let investors," he said. ($1 = 0.6617 pounds)

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

6 Labour Party lawmakers defect to PDP in Enugu State

6 Labour Party lawmakers defect to PDP in Enugu State

Tinubu's special assistant donates food items to 1,700 residents in FCT

Tinubu's special assistant donates food items to 1,700 residents in FCT

Anambra PASAN begins strike over Soludo's failure to grant financial autonomy

Anambra PASAN begins strike over Soludo's failure to grant financial autonomy

Governor Sanwo-Olu pays ₦4.48 billion to 1,455 retirees in accrued pensions

Governor Sanwo-Olu pays ₦4.48 billion to 1,455 retirees in accrued pensions

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Nigerians are expected to pay for TV licences — here’s what the law says

Nigerians are expected to pay for TV licences — here’s what the law says

BEDC management denies rumours of dissolution, increases revenue

BEDC management denies rumours of dissolution, increases revenue

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

What Nigerian law says about treatment of people with disabilities

What Nigerian law says about treatment of people with disabilities

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT